Are Credit Card Rewards Rewarding as They Claim to Be


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Travel with Credit Cards » Are Credit Card Rewards Rewarding as They Claim to Be

Are Credit Card Rewards Rewarding as They Claim to Be

Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
Credit cards give away incentives that are very attractive to credit card users. Establishments like gas stations, department stores, restaurants and hotels, support the credit card companies reward programs as they also benefit from them. Whenever you use your credit cards with these companies you gain points which you can redeem for rewards like free travel tickets, gift cards, discounts, free fuel, and many others. With you spending too much to earn points, you may ask yourself, are these rewards really rewarding? To some people it can be, but rewards that you gain may not be applicable for you or in some cases it's not worth the price, may be you're just into the fever of getting something for free. Nevertheless, there are some cards that really offer rewards that are not only satisfy your needs but you can say it's worth the spend. To use your credit card to your full advantage, you have to: • Know the limit of your rewards. Every credit card offer limited rewards although you earn points constantly. For example, your cash back reward from your gasoline purchases are only limited to 5%. • Check if your rewards are worth spending. You might be spending too much to earn points for an item that costs a lot less if you buy it with cash. For example, you spent $100 to earn points for a $5 item. This is not the usual case, because if you have credit cards that offer double points especially for air mile cards, you spend less to earn big points automatically. • Figure out how much the points cost. When you know how much you have to spend to earn points, you can proper allot money for it rather than overspend. • Avoid incurring monthly balances. If you're monthly balances pile up, you may not be able to pay for it and you'll lose your points. You have to pay higher interest rates for missed payment, thus instead of saving money for your next purchase you're losing more. • Understand your gas rewards. Gas rewards credit cards give up to 5% cash back on you gasoline purchases. To avail the cash back rewards, you have to purchase gas from certain gasoline stations that recognizes your credit card. A disadvantage may be that some store or merchandisers may not recognize your credit card, so even if you bought an item from them you won't earn any point or cash back reward. • Look for credit cards that offer rewards at a lower level of spending. Frequent flyer miles credit cards do such a thing. These credit cards allow you to earn double mile points easily even if you spend less. • Know what stores, establishments or services give the most points. Some partner stores of your credit card company give extra bonuses when you shop with them using credit cards that they accredit. If you can, then shop with them so you can gain points much easier. No matter how attractive the rewards program is, you need to keep in mind that these are awarded only if you use your credit cards. Remember that with every purchase using your credit card, you need to pay extra for the interest. Hence, it is still important to consider your budget if you can't afford it, then don't buy it, even if it guarantees a free trip around the world.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Other Travel with Credit Cards Research:

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!